General Motors (GM) has cut its shares outstanding from roughly 1.395 billion at the start of 2023 to 849 million as of Q3, a reduction of nearly 40% through buybacks, and its stock has risen almost 130% since the start of 2023. Its Q3 report revealed a new multiyear buyback authorization of $20 billion. In a simple hypothetical where earnings stay flat and $20 billion buys back shares at $80 each, the share count would fall to 599 million (a 29.4% cut) and EPS could rise 41.7%, though the article stresses this is not a forecast. GM generated $5.9 billion in adjusted automotive free cash flow in Q3 and raised its 2026 guidance to $11.5-12.5 billion from $9.5-11.5 billion. Morningstar puts GM's total yield, including buybacks and dividends, at 12.59% versus 5.7% for Ford, and the author argues this deserves more recognition than Ford's dividend.
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